The UK-based soft drinks and confectionary producer Cadbury Schweppes, which owns the Dr Pepper/Seven Up business, has said it is monitoring the success of the mid-calorie CSD launches from Coke and Pepsi as it decides on its own strategy in this new segment.

Speaking at the Beverage Digest conference in New York yesterday Mike McGrath, president of sales for Cadbury's Americas beverages unit said the company will "be prepared to move" if mid-carb sodas are a hit.

Coca-Cola is launching C2 - a mid calorie version of Coca-Cola - this month. PepsiCo, meanwhile will roll out at about the same time its mid calorie version of Pepsi Cola - PepsiEdge.

The drinks are a response to increasing concerns that carbonated soft drinks are a direct contributor to obesity.